Auditor General flags Sh475 million climate summit grant signed four months after event
Auditor General Nancy Gathungu said the government failed to demonstrate how the delayed funds were applied, warning that the money may have been diverted to non-intended uses.
The State Department for Environment and Climate Change is under scrutiny following revelations that a Sh475.52 million grant meant to finance the 2023 African Climate Summit was signed four months after the conference had already taken place.
Auditor General Nancy Gathungu said the government failed to demonstrate how the delayed funds were applied, warning that the money may have been diverted to non-intended uses.
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In her report on the accounts of the department for the 2023/24 financial year, Gathungu revealed that Kenya entered into a grant agreement of $3 million (about Sh475.52 million) with the African Development Bank on November 15, 2023, despite the summit having been held from September 4 to 8 in Nairobi.
The agreement specified that the grant was to be used exclusively for “meeting the cost of eligible activities” of the ACS and, thereafter, adaptation compacts.
The funds were disbursed to the project’s special account only on January 3, 2024, four months after the summit, prompting the Auditor General to note: “The eligibility of the expenditure could not be confirmed,” as the government could not adequately explain the delay during the audit.
The audit report states that the grant was to partially cover flight travel, hotel accommodation, and conference facilities for participants.
Any remaining financial resources after eligible commitments and liabilities had been satisfied were to be reimbursed to the bank.
However, the report flagged inconsistencies in the project’s financial records. While the special account reconciliation statement showed withdrawals of Sh330.24 million for ACS activities, only Sh4.92 million appeared in the project’s financial statements as proceeds from domestic and foreign grants.
“The amount may have been utilised for expenditures other than activities provided for in the financing agreement,” reads the audit report, which also notes inaccuracies in the project’s financial statements.
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